When setting up the individual partners in a partnership one of the choices is "Disregarded Entity"... Would this be used for all partners who are LLCs....???
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Jon
A disregarded entity is when one person or entity owns all of the LLC. He/It reports all activity on Sched C or E, if indivdual, or on the other entity as if the LLC does not exist.
Maybe you should restate your question with more info.......Last edited by BOB W; 02-16-2006, 09:21 PM.This post is for discussion purposes only and should be verified with other sources before actual use.
Many times I post additional info on the post, Click on "message board" for updated content. -
Llc
Is any LLC of itself disregarded. There is no form it files made for it. It can be 1065, 1120, 1120S, E, C etc. LLCs owned by other LLCs are disregarded. If I have LLCs in this partnership am I supposed to call them up and say are you a Partnership, Corporation or is this going on your C or E.Comment
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TTB, page 18-13 - "Single owner. The entity is considered one-in-the-same with the owner, and is referred to as a "disregarded entity...." More than one owner. The entity is classified as a partnership."
In other words, if there are more than one owner, the LLC cannot be considered a disregarded entity.
If an LLC owns other LLCs, the same rule applies. If the other LLCs are single member LLCs, then they may be considered disregarded entities and you would simply put the income and deductions from that LLC on the parent LLC return. If multiple owners, then that LLC cannot be considered disregarded and must file its own return.Comment
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1065 instructions
I did not want to look-but the answer is if you have an LLC as a partner the partnership MUST enter the LLC"s classification for federal income tax purposes, i.e. partnership/corporation or disregarded entity.. I just do not think my job as a preparer is to get information on how any partners are going to "file" their return-I probably should ask "when" are they going to file also. We are definitely in the the new era where the federal government is the largest single employer in the US. If you are in Minnesota the largest employers are:
1. The University of Minnesota
2. Federal Government
3. State of Minnesota
It has been that way since about 1990-and the above does not include employees of Counties (which I believe has increase 400%-since 1980), cities and the public school system. All of the above get their revenues from taxes and fees.
In 1982 the three largest in Minnesota were:
1. Northwest Airlines
2. 3M
3. Dayton Hudson(Target)?? General Mills
We were the first to get there-do not laugh several states have caught us and the rest are rapidly getting there. There is one absolute guarantee-all of the tax supported employers will grow every year and give raises. When do they hit the wall like GM, Northwest and other airlines??? The next generation has to be a LOT smarter.
Have your kids grow up to be government workers.Comment
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